The Conference Board Leading Economic Index® (LEI) for China increased 1.2 percent in March. The index stands at 285.7 (2004 = 100), following a 0.9 percent increase in February and a 0.3 percent increase in January. Four of the six components contributed positively to the index in March.
"The rise in the Leading Economic Index for China accelerated in March from February," said Andrew Polk, resident economist at The Conference Board China Center in Beijing.
"However, its six-month growth rate remains moderate, which suggests that the improvement has not firmed up yet. The environment for real estate investment is dismal and looks set to continue dragging on economic growth in Q2. Thus March's sharp rebound of current economic activity is likely to be temporary."
The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, increased 1.1 percent in March to 255.6 (2004 = 100), following no change in February and a 1.3 percent decline in January. Four of the five components contributed positively to the index in March.
The Conference Board LEI for China aggregates six economic indicators that measure economic activity in China. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.